©2016 Michigan Economic Development Corporation

New Automotive Plant in Dundee to Create Nearly 850 Michigan Jobs

Tuesday, February 17, 2004

Susan McCormick
(517) 335-4590

Governor Joins Company, Local Officials to Announce Major Manufacturing Expansion

Governor Jennifer M. Granholm today joined company executives and local officials in a community celebration to announce the decision by Global Engine Manufacturing Alliance (GEMA), to bring a second automotive engine manufacturing facility to Dundee. Assistance from the state of Michigan Economic Development Corporation (MEDC) helped convince the company to choose Dundee for the expansion which, is expected to create 842 jobs directly and indirectly over the next 20 years and generate $323 million in private investment.

"Global Engine has chosen Dundee and Michigan, not once, but twice," Granholm said. "The company decision to continue to grow here is a testament to the top quality of the area workforce and the outstanding collaborative efforts of state, local, business and labor organizations that worked together to make this expansion a reality. This project is proof that Michigan remains competitive in the challenging global fight to keep manufacturing investment and jobs."

Global Engine Manufacturing Alliance is a joint venture between DaimlerChrysler, Hyundai and Mitsubishi. The new facility will provide 450,000 square-feet of additional manufacturing space for production of a new family of 4-cylinder aluminum engines to be used in a variety of future vehicles.

According to an economic analysis conducted by the University of Michigan, the second facility is expected to create 300 new jobs over a five-year period. The analysis also indicates that another 542 jobs could be created indirectly as a result of the increased economic activity the plant will generate.

"This is great news at a time when we really need it," said MEDC President and CEO, Don Jakeway. "Added to last year $2 billion in automotive investment in Michigan, this project will further anchor advanced automotive manufacturing in Michigan and continue our legacy as a leader in innovation."

Global Engine Manufacturing Alliance had considered locating the plant at competing sites in other states. The MEDC awarded Single Business Tax credits worth up to approximately $21.6 million over a 20-year period and up to $400,000 in Economic Development Job Training (EDJT) grants to make a Michigan decision cost-competitive.

Additional assistance offered to bring the project in the state includes:a 50 percent abatement of the company new real and personal property taxes by the village Dundee worth an estimated $19.7 million over the next 12 years;

  • a $5 million federal Community Development Block Grant to the village of Dundee to help with wastewater facility improvements and pre-employment training assessment activities;
  • a worker training grant from the Southeast Michigan Community Alliance MichiganWorks! office valued at more than $2.6 million;
  • the MEDC support of Dundee application for a $800,000 Transportation Economic Development grant through the Michigan Department of Transportation for roadway improvements.

"All the locations had attractive elements," said Global Automotive Manufacturing Alliance President, Bruce Coventry. "But when all is said and done, we had everything we needed right here including a number of great partnerships with the state and with the village."

Today celebratory event also included a special announcement regarding the landscape architecture design for the entire GEMA site in Dundee. Global Engine Manufacturing Alliance challenged colleges and universities across the country to develop the best design. Michigan State University landscape architecture school was proclaimed the winner today.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.

Global Engine ManufacturingAlliance, LLC
Economic Analysis
Summary Estimates
(All estimates in 2004 dollars)

TOTAL JOBS CREATED842
Direct300
Indirect542
NET POSITIVE STATE REVENUE IMPACT$64,488,000
Revenue Foregone$21,613,000
Revenue Gain$86,101,000
Average Wage$1,041
Personal Income Generated Over
Life of the Tax Credit Agreement
$ 1,119,646,000